Things are quickly changing when it comes to internet data
plans. While we were used to a plethora of unlimited data plans for our
smartphones and even our home internet connections, service providers are now implementing
bandwidth caps to curb data usage.

When it comes to smartphones, many users feel that that
should be able to use that data anyway they please, however, service providers
clearly don't feel the same way. For this reason, data tethering -- which
allows you to share your smartphone internet data connection with other devices
-- is usually a separate charge from your data plan.

Those that get around this extra fee by jailbreaking and
using "unauthorized" apps had better start watching your back --
AT&T is beginning to crackdown on users. According
to TUAW, AT&T is sending out letters to customers that it believes are
using unauthorized tethering solutions. Here's a snippet from the full text
(which can be found here):

Tethering
can be an efficient way for our customers to enjoy the benefits of AT&T’s
mobile broadband network and use more than one device to stay in touch with
important people and information. To take advantage of this feature, we require
that in addition to a data plan, you also have a tethering plan.

Our
records show that you use this capability, but are not subscribed to our
tethering plan…

If
we don’t hear from you, we’ll plan to automatically enroll you into DataPro 4GB
after March 27, 2011. The new plan – whether you sign up on your own or we
automatically enroll you – will replace your current smartphone data plan,
including if you are on an unlimited data plan.

If
you discontinue tethering, no changes to your current plan will be required.

One of the most popular apps for jailbroken iPhones is MyWi.
MyWi allows a user to tether their iPhone without payingthe additional monthly
tethering fee to AT&T. The app allows tethering via USB, Bluetooth, or
Wi-Fi and is available for a
one-time fee of $19.99.

The letter doesn't say how AT&T was able to determine
that the customer was tethering, but it stands to reason that grandfathered
unlimited data plan customers that are using multiple gigabytes of data per
month are prime suspects.

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This is going to make for some very interesting litigation. AT&T is effectively making unilaterally changes to a customer's existing contract and then adding unauthorized charges to their account. Sounds like grounds for a consumer to immediately terminate their contractual relationship with AT&T, without paying ETF, for breach of contract.

And to AT&T, go to hell. You may want to make useless distinctions between what flows through your pipes but the reality is: data is data! It doesn't matter if I'm using it to watch movies, check email, surf the web, stream Pandora/ESPN, or tether; it's all the same data. If I have a data plan, I should be able to do whatever I want with the data that I've already paid you for.

You obviously have never read through your contract. Let me make it easy for you:

quote: Furthermore, plans (unless specifically designated for tethering usage) cannot be used for any applications that tether the device (through use of, including without limitation, connection kits, other phone/smartphone to computer accessories, BLUETOOTH® or any other wireless technology) to Personal Computers (including without limitation, laptops), or other equipment for any purpose. Accordingly, AT&T reserves the right to (i) deny, disconnect, modify and/or terminate Service, without notice, to anyone it believes is using the Service in any manner prohibited or whose usage adversely impacts its wireless network or service levels or hinders access to its wireless network, including without limitation, after a significant period of inactivity or after sessions of excessive usage

I agree data is data, and it should not be discriminated against. However it looks like they covered themselves with this clause, as disgusting as it is.

Typically in this case, one would say don't use ATT and go with someone else, but I am sure all the other guys have similar clauses. Now when data plans were unlimited, I could understand putting this tethering clause in. However with data caps in place now, I don't see this being applicable.

This seems to be more like a price fixing / monopolistic type of action which the SEC should look into.

The one problem I see is they need to prove beyond doubt that the user was tethering and that it is just not an assumption based on usage. Also "modify service" is a questionable term. Does that give them to right to add unauthorized fees or just disconnect or limit your bandwidth?

This is a private contract between you and AT&T. The contract states that they are free to change terms at any time. If they exercise their right to change terms, you also have the right to cancel the contract with no penalties.

And you should perhaps do some research into contractual provisions and how the courts feel about them. Just because AT&T throws something into a contract does not mean it's enforceable by any stretch of the imagination. Unilateral contractual modifications have been repeatedly denied by the courts as being unconscionable, despite what plain language appeared in the contract at the outset, and particularly in situations where one party (AT&T) has considerably more bargaining power than the other party (consumer).

So what you're saying is due to the fact that I've been a customer of this company since it was Cingular One, I should be able to send them a letter stating that "Unless you dispute this request in 90 days, from that day forward you agree to give me and my family your service for free until a time that we are no longer satisfied with said service"? This is essentially what AT&T is telling me, a loyal customer for 12 years. I sold you an unlimited data plan, that I am now going to limit. Oh and by the way, you can only use the data that I say you can use. And if you don't like it, I'll send you a letter that you won't probably read invalidating our contract only to replace it with one in my favor. K.M.A. AT&T.